Drug giant agrees to pay $762 million in criminal and civil penalties
in alleged scheme

January 03, 2013 04:44 PM Eastern Standard Time

SEATTLE--(BUSINESS WIRE)--Hagens Berman Sobol Shapiro LLP, a law firm dedicated to representing
whistleblowers today announced that its client, Marshall S. Horwitz,
M.D., Ph.D., of Seattle, Wash., played a key role in uncovering an
illegal scheme allegedly organized by pharmaceutical giant Amgen
(NASDAQ: AMGN), which led to $762 million in criminal and civil
penalties levied by the U.S. Department of Justice.

In 2006 Horwitz alerted authorities to Amgen’s alleged manipulation of
the scientific record regarding two of its blockbuster drugs, Aranesp
and Neulasta. He recognized that this manipulation led to more
prescriptions for off-label uses of these drugs, which resulted in
enormous expenditures by federal Medicare and state Medicaid programs,
according to court documents.

In early 2007 Horwitz filed suit under the federal False Claims Act’s qui
tam provisions, which allow whistleblowers to pursue recoveries on
the government’s behalf for funds wrongfully paid. These provisions also
allow whistleblowers to receive a portion of the funds recovered as a
reward.

“We are proud to have represented Dr. Horwitz in this case,” said Steve
Berman, managing partner of Hagens Berman. “It takes an incredible
amount of courage to step forward and speak the truth in instances like
this.”

“Dr. Horwitz helped put a stop to a fraud that was costing taxpayers
billions of dollars, while also improving safety in the use of Aranesp
and Neulasta,” Berman added. “For example, many of Dr. Horwitz’s
allegations centered on Aranesp used as an off-label treatment for
so-called anemia of cancer. That use has been shown to be quite
dangerous to oncology patients, and Dr. Horwitz’s suit put a spotlight
on Amgen’s unlawful efforts to increase Aranesp prescriptions for this
condition.”

Berman also credited the commitment of the United States Attorney’s
Office for the Western District of Washington, particularly AUSAs Harold
Malkin, Peter Winn, and Susan Loitz. “Those prosecutors committed
themselves to pursuing Amgen for its indefensible conduct and were a
fantastic team to work with,” said Berman.

Seattle-based Hagens Berman Sobol Shapiro LLP is a plaintiff-focused law
firm with offices in ten cities. Founded in 1993, the firm has been
named to the National Law Journal’s Plaintiffs Hot List six times. More
information about the firm is available at www.hbsslaw.com